Tag Archives: YSR

Mint, the business newspaper from the Hindustan Times stable, has a story in today’s issue that the stock market regulator, SEBI, is looking into RIL’s financial statements and reports to see if the company had divulged its holding or investment in ETV before the matter became public.

Vijayalakshmi had alleged (page 32 of petition) that RIL’s investment in Ushodaya was its way of saying thanks to the previous TDP government of Chandrababu Naidu, for wilfully surrendering Andhra Pradesh’s right over the discovery of gas in the Krishna-Godavari basin in favour of RIL.

Eenadu founder Ramoji Rao, an associate of Naidu, had been used by RIL as a “vehicle of the quid pro quo.”

Now, Mint quotes an unnamed “senior SEBI official” as saying:

“SEBI is looking into whether RIL has disclosed in any of its financial reports about its holding or acquisition of stakes in Eenadu Group to the shareholders. It is mandatory to disclose such information to the shareholders.”

A second unnamed source is quoted as saying:

“Prima facie, information about RIL’s holding in Eenadu Group is not disclosed anywhere specifically. As per the listing agreement norms, it should have been mandatorily disclosed. This amounts to possible violations of regulations.”

“I am surprised that RIL said in the Andhra Pradesh high court that the stake acquired by JM Financial in the ETV channels was on behalf of itself. I went through the balance sheet but did not find anything of this nature.”

Screenshots of four English news channels (NDTV, CNN-IBN, Times Now, News X) and four Telugu news channels (Saakshi, TV9, TV5, Gemini News), around 2.40 pm on the day the Andhra Pradesh chief minister Y.S. Rajashekhara Reddy‘s helicopter went missing.

The top screen proclaiming the missing chief minister “safe” is of Saakshi, the channel owned by Reddy’s son, Jagan Mohan Reddy, now a member of Parliament. Gemini News too had come to the same conclusion, while among the English channels, NewsX claimed the chopper carrying the CM had been found.

The top-23 Google searches at 6.10 pm were all related to the news of the chief minister whose whereabouts were unclear eight hours after he went missing.

From a media perspective, the fraud at India’s “fourth largest Information Technology company” has been remarkable for two things.

One, the failure of the business media in catching a whiff of what was cooking in the accounting kitchens of the disgraced Hyderabad company not just one year, but for seven years.

If that failure is understandable because none of the overseeing institutions did so either, it is remarkable how easily an even larger media circus has allowed “India’s Biggest Corporate Fraud” to slip into “India’s Biggest Coverup” in one month flat.

After the initial flurry when B. Ramalinga Raju fessed up to the fraud on January 7, there has been a stunning reluctance to ask the big, hard-hitting, politically incorrect questions. Instead, the media have happily allowed themselves to be diverted and distracted with safety-first stenography that even Satyam’s public relations men (and women) would have envied.

As if protecting the reputation of a city or its leading IT brand is the duty of the media, not serving the interests of readers.

R. Jagannathan, the managing editor of DNA, has been one of the few business journalists who has managed to retain his eye on the ball and stick his neck out. In an edit page column, he writes of the curious convergence of political, regional and business interests that is conspiring to derail the probe.

“The prime minister does not want Satyam to sink as it might dent India’s global IT image. The UPA’s political leadership cannot let a corruption scandal damage Andhra chief minister Y.S. Rajasekhara Reddy (YSR) in an election year. With him goes the Congress party’s hope of returning to power as head of the next coalition.

“Turfed out of Bihar by the NDA, the political interests of the Lalu Prasad Yadav-led Rashtriya Janata Dal (RJD) mesh well with those of the Congress. It partly explains the Andhra-Bihar nexus in the Satyam probe.

“The man at the centre of it all, company affairs minister Prem Chand Gupta, is from the RJD. The Andhra Pradesh DGP is a Yadav from Bihar, S.S.P. Yadav. The policeman handling the Andhra CID probe is inspector-general of police V.S.K. Kaumudi. When he was with the CBI some years back, Kaumudi probed Lalu’s fodder scam. He obviously knows a thing or two about Lalu’s secrets. Lalu and the Andhra CM, thus, have an interest in helping each other out….

“It is obvious who is really being protected: the Andhra chief minister. The Satyam scandal was essentially about the misuse of corporate funds for private purposes, including the purchase of benami land and wangling lucrative contracts from the Andhra government. It is impossible for land deals to be done in the state without the chief minister’s nod.”